EUR/CHF risk reversals slide to 4.5-month lows

Omkar Godbole FXStreet Contributor

EUR/CHF one-month 25 delta risk reversals (EUCH1MRR), a gauge of calls to puts on the Euro-Swiss Franc exchange rate, is currently trading at -1.22 in favor of puts - the lowest level early November. The gauge stood at -0.925 nine days ago.

Put simply, demand or the implied volatility premium for the EUR/CHF put options (bearish bets) has increased sharply in the last few days - a sign the investors have positioned for strength in the Swiss currency.

As of writing, EUR/CHF is trading at 1.1181, down 169 pips from the March 19 high of 1.1359.

EUCH1MRR

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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